Suppose that JB Cos. has a capital structure of 76 percent equity, 24 percent debt, and that its before-tax cost of debt is 14 percent while its cost...
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Question

Suppose that JB Cos. has a capital structure of 76 percent equity,

24 percent debt, and that its before-tax cost of debt is 14 percent while its cost of equity is 18 percent. Assume the appropriate weighted-average tax rate is 25 percent.


What will be JB's WACC? (Round your answer to 2 decimal places.)

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